A Follow-up Audit Report on the Department of Insurance's Enforcement of Solvency Standards for Insurance Companies
Report Number 13-025
The Department of Insurance (Department) has fully or substantially implemented all 18 recommendations selected from An Audit Report on the Department of Insurance’s Enforcement of Solvency Standards for Insurance Companies (State Auditor's Office Report No. 10-009, October 2009). The 2009 audit report identified weaknesses in following internal policies and procedures, maintaining required documentation, and ensuring the security of insurance company financial data.
Of the 18 recommendations fully or substantially implemented:
- The Department fully or substantially implemented eight recommendations related to internal policies for managing receiverships and administrative orders.
- The Department fully or substantially implemented four recommendations related to the financial monitoring of insurance companies for compliance with solvency standards and related controls.
- The Department fully implemented two recommendations related to controls over its central enterprise database and licensing applications.
- The Department substantially implemented two recommendations related to its financial examination process, including documentation of work performed by a third party, and completion and approval of examinations of insurance companies.
- The Department substantially implemented one recommendation related to its reviews of insurance license applicants' documentation.
- The Department substantially implemented one recommendation related to requiring special deputy receivers to conduct semi-annual evaluations of all subcontractors.
Auditors communicated other, less significant issues to the Department's management separately in writing.
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